India’s Hotel Investment Boom: Transactions May Approach $1 Billion in 2026

• India’s hotel deals could near $1 billion in 2026.

• 2025 transactions jumped 67% year-on-year to $567 million.

• Q1 2026 saw $345 million in deals, placing India among APAC’s top five.

• Strong domestic demand and new investors fuel momentum.

• APAC hotel investments may exceed $13 billion in 2026.

  
  

India’s hospitality sector is on track for a landmark year, with hotel transaction volumes projected to approach $1 billion in 2026, even as global geopolitical tensions and travel disruptions persist. According to data and projections from property consultancy JLL, investment momentum has accelerated sharply, positioning India as one of the most dynamic hotel markets in the Asia-Pacific region.

In 2025, hotel transactions in India totaled $567 million, marking a robust 67% increase compared with the previous year. That upward trajectory has carried into 2026. During the first quarter alone, deals worth $345 million were recorded — a substantial leap from the $98 million seen in the same period last year.

The surge has propelled India into the top five hotel investment markets in Asia-Pacific for the first time. Traditionally, countries such as Japan, China, South Korea, Australia and Singapore have dominated regional hotel transaction volumes, collectively accounting for the bulk of activity. However, the latest quarterly data signals a shift in that landscape.

Nihat Ercan, CEO of JLL’s Hotels and Hospitality Group for Asia Pacific, noted that initial projections had placed India’s 2026 hotel transaction volumes at roughly $500 million. But if the strong first-quarter pace continues, total deal activity could move significantly higher — potentially nearing the $1 billion mark by year-end.

In Q1 2026, Japan led the region with approximately $1 billion in hotel sales, followed by China at $724 million and South Korea at $471 million. India ranked fourth at $345 million, ahead of Australia at $235 million. India accounted for 13% of the region’s transaction activity during the quarter — a noteworthy share in a competitive investment environment.

Across Asia-Pacific, total hotel transaction volumes in 2025 reached $10.8 billion, reflecting a 20% decline from the $13.3 billion recorded in 2024. However, JLL observed renewed energy toward the end of last year, with deal activity picking up in the final quarter and continuing into early 2026. The firm now expects regional hotel transactions to surpass $13 billion this year if the current pace is sustained.

Industry participants point to a broadening investor base as a key driver of India’s performance. Gaurav Sharma, Managing Director – Hotels, India, and Senior Director – Hotels Capital Markets Asia at JLL, said that alongside private equity firms and family offices, publicly listed companies have become increasingly active in scouting hotel assets. This expanding pool of buyers is strengthening the investment ecosystem.

Despite recurring global uncertainties, investor appetite remains resilient. Market participants appear to be adjusting to ongoing geopolitical risks rather than retreating from them. Developers continue to sign new hotel projects across emerging destinations within India, reinforcing confidence in the long-term prospects of the sector.

Strong domestic travel demand is also supporting the investment narrative. India, along with several other Asia-Pacific markets, is benefiting from buoyant local tourism, which has helped offset fluctuations in international travel. According to Ercan, investors view India as a structural growth story within the hospitality space, driven by rising incomes, expanding infrastructure and increasing mobility.

While prolonged global conflicts could weigh on sentiment, many long-term investors remain focused on the region’s underlying fundamentals. For them, India represents not just a short-term rebound story but a sustained opportunity within a broader Asia-Pacific growth cycle.

If the current momentum holds, 2026 could mark a defining year for India’s hotel investment landscape — one that signals its emergence as a serious contender among the region’s leading hospitality markets.